Most people think business is complicated. It's really not. Alex Hormozi has basically built a career out of proving that if you can do 5th-grade math and have a little bit of "dog" in you, you can make more money than you ever dreamed of. The buzz around the $100M Money Models book is hitting a fever pitch because, let’s be honest, everyone is tired of vague "mindset" advice. They want the math.
They want to know exactly how to turn $1 into $10.
If you’ve followed Hormozi’s trajectory from sleeping on gym floors to selling a massive stake in his company, Acquisition.com, you know he doesn’t do fluff. This book is the third installment in his "million-dollar" series, following $100M Offers and $100M Leads. While the first two focused on what to sell and how to get people to see it, this one is about the structural "bones" of the business. It's about the models.
The Reality of $100M Money Models
Here is the thing about business models: most of them suck. You might be working sixteen hours a day, but if your model has a "leaky bucket" or a low ceiling, you're basically sprinting on a treadmill. Hormozi’s $100M Money Models isn't just about picking a niche; it’s about understanding the mechanics of how money moves through a system.
He talks a lot about the "Wealth Equation." It's not some secret code. It’s a simple realization that profit is just the gap between what it costs you to get a customer and what that customer pays you over their lifetime.
Wait.
Think about that for a second. If it costs you $50 to get a customer (CAC) and they only ever pay you $45 (LTV), you are literally paying for the privilege of working. You're going broke. Fast. Most entrepreneurs are doing exactly this and wondering why their bank account stays at zero despite "hustling."
The book dives deep into the specific structures—like recurring revenue models, licensing, and high-ticket service arbitrage—that allow a business to scale without the founder having a mental breakdown. It's about leverage.
Why Complexity is the Killer of Profit
Complexity is a trap. I’ve seen so many founders try to launch five different products at once because they think "diversification" is what rich people do.
Nope.
Rich people focus. They find one "money model" that works and they pour gasoline on it. In the $100M Money Models framework, Hormozi argues that you should stay "monomaniacally focused" until you hit at least $10M. Only then do you even think about adding a second revenue stream.
He uses the example of a local gym. If you own a gym, don’t try to sell supplements, apparel, online coaching, and juice bar snacks all at once. Pick the highest-margin service—likely personal training or small group sessions—and maximize the capacity of that model first.
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It’s boring. But boring pays for Ferraris.
Honestly, the most refreshing part of his approach is the lack of "passive income" BS. He’s very clear that these models require an insane amount of upfront work. You have to build the machine before the machine can feed you.
Decoding the Different Business Archetypes
The book categorizes businesses into specific "types" that dictate how they grow. You've got your "Service" models, your "Product" models, and your "Platform" models. Each has a different bottleneck.
The Service Model: This is where most people start. You sell your time or your team's time. The problem? It’s hard to scale because humans are messy. The $100M Money Models approach to services is to "productize" them. You make the service so standard that a monkey could follow the SOP (Standard Operating Procedure).
The Software/SaaS Model: Everyone wants to build an app. It’s the dream, right? High margins, recurring billing. But Hormozi points out the massive "moat" you need to build. If you don't have a huge distribution advantage, your software will just sit on a digital shelf.
The Licensing/Franchising Model: This is the "End Game" for many. Once you have a model that works in one location or for one person, you sell the rights to that model. This is how you get true decoupling of time and money.
The Math You’re Probably Ignoring
Let's talk about the "Rule of 40." In the world of high-level business models, investors look at your growth rate plus your profit margin. If it’s over 40%, you have a "great" business. If it's under, you have a "struggling" business, even if you’re making millions.
Hormozi pushes the idea of "Negative Working Capital." It sounds scary. It’s actually the holy grail. It means your customers pay you before you have to spend money to deliver the product. Think about a subscription box or a pre-paid annual membership. You get the cash today, and you use that cash to grow the business tomorrow.
If you can master this one piece of the $100M Money Models philosophy, you’ll never have a "cash flow crisis" again.
Common Misconceptions About Scaling
People think scaling is just "doing more of what you're doing."
That's wrong.
Scaling is often about doing fewer things better. It’s about removing the "drag" from your business. Maybe you have a client who pays you well but takes up 80% of your support team’s time. In the $100M framework, that client is a cancer. You fire them.
You simplify the model so it can handle the pressure of growth.
I remember talking to a guy who was trying to scale his agency. He had 15 different packages. He was miserable. We looked at the numbers and realized one specific package—a 90-day lead gen sprint—accounted for 70% of his profit but only 20% of his work.
We cut everything else.
Within six months, he doubled his take-home pay while working half the hours. That is the power of picking the right money model. It's not about working harder; it's about choosing a vehicle that goes faster for the same amount of fuel.
The Psychology of the $100M Founder
Hormozi doesn't just talk about spreadsheets. He talks about the "Internal Game." Most people fail to implement these models because they are afraid of losing what they have. They have "Loss Aversion."
They’re afraid to stop offering a service that brings in $5k a month, even if it’s preventing them from building a model that could bring in $500k a month.
You have to be willing to kill your "darlings."
Actionable Steps to Implement the Models
You don't need to read the book ten times to start. You can actually audit your current situation right now.
Step 1: Calculate your True LTV. Don't guess. Look at your bank statements for the last 12 months. Total revenue divided by total unique customers. Is that number big enough to support your lifestyle and growth? If not, your model is broken.
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Step 2: Identify the "Constraint." Every business has one bottleneck. Is it "I don't have enough leads"? Or is it "I can't fulfill the orders fast enough"? The $100M Money Models strategy is to solve the bottleneck, and then immediately look for the next one that pops up. Because one will always pop up.
Step 3: Standardize the Delivery. If you are the only one who can do the work, you don't have a business. You have a high-paying job. To move toward a $100M model, you must document every single step of your process. If a task isn't written down, it doesn't exist.
Step 4: Shift to Front-End Profit. Try to get as much money upfront as possible. It changes the psychology of the business. When you have a pile of cash sitting in the bank, you make better, calmer decisions. You don't act out of desperation.
Business is a game of numbers, but it’s played by people. If you can align your math with your human capital, you win. The $100M Money Models book is essentially the rulebook for that game.
Don't overthink it. Just start measuring the right things. Stop looking at "vanity metrics" like Instagram followers and start looking at your Contribution Margin per customer. That is where the real wealth is hidden.
The most important takeaway? Your business is a machine. If the machine isn't giving you the output you want, don't just kick the machine. Open the hood and change the parts. Change the model.
It’s your move.